Miners are closing... (video)

[mayax]

Take a look : https://youtu.be/kxbCHlXZ-0U

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[asyakashi]

very sad, I see this happening in my country some miners try to sell their VGA at cheap prices.
this is an unpredictable risk and almost all miners suffer losses this year.

[BTCgrinders.com]

Does he not have enough money to keep it somewhat running? He mentioned he had this in 2013. I personally do not know much about mining as my team and I are marketers and developers, but if he was around in 2013, that means he must have reaped the benefits of the last bubble about a year ago. Is he just giving up or just out of money?

[squatter]

Does he not have enough money to keep it somewhat running? He mentioned he had this in 2013. I personally do not know much about mining as my team and I are marketers and developers, but if he was around in 2013, that means he must have reaped the benefits of the last bubble about a year ago. Is he just giving up or just out of money?

I'm not familiar with him, but I watched the video and it seems like most of the hardware was run on behalf of clients. Apparently everything was fine a couple weeks ago, but then his clients started shutting down all at once, destroying his cash flow. He's out of money. He poured a lot of money into building out that facility the past year and he can't afford to pay the rent on the warehouse anymore.

I remember seeing stuff like this in 2014. I figured after this recent crash that we might see some miners start liquidating their operations.

[sorrysteve1]

Does he not have enough money to keep it somewhat running? He mentioned he had this in 2013. I personally do not know much about mining as my team and I are marketers and developers, but if he was around in 2013, that means he must have reaped the benefits of the last bubble about a year ago. Is he just giving up or just out of money?

He was probably not wise with investments and savings. If someone had started mining in 2013 and was smart with it until this point then they wouldn't be going bust, they'd still be very comfortable. It's a sorry sight to see and we'll see more of it in the current market but don't forget that not all of these stories are free from self infliction.

[drumamat]

We can only wait for prices to start rising.To justify mining.I am sure that the same trend is observed in other countries where the cost of electricity is too high.

[kryptqnick]

very sad, I see this happening in my country some miners try to sell their VGA at cheap prices.
this is an unpredictable risk and almost all miners suffer losses this year.

I agree that it is really sad that people are losing their businesses like that, because of such low prices. Bitcoin will be fine without them, the difficulty rate will adjust, but it will become even more centralized in terms of mining, because it's the small private businesses that will not be able to take the risks and keep going. So the current situation is bad not only because it makes people lose and thus not trusting cryptocurrencies, but also because of the serious mining centralization issue that will get even bigger if the low point is not reached soon and the recovery doesn't start.

[joeperry]

Even if i'm that person, I will also close my mining rigs I'm just wasting an electricity and money if I'll let my equipments to run even though i don't have assurance on what will happen to Bitcoin.

Another thing he can do is to use his rigs to other type of cryptos.... or it's not good idea? what do you think about it? But as long as I've seen in the market and today's industry the whole cryptocurrencies are dropping.

[12tribes]

Mining profitable coins comes at a higher cost now compared to some years ago as more and more people enter the foray to get a piece of the pie. whether he was in it for himself or for clients he certainly made some profits for himself. However, we must not forget that the cost to mine a block or a coin is actually increasing and then to see the markets fall helplessly, the profits are all burnt and it may not be exactly profitable at the moment to mine until the market recovers.

[clonely]

One way or another, miners comes and goes... Probably, they will go in for other crpytocurrencies. I think, true question is the which cryptocurrency they will pick! I guess Ethereum will be the winner soon! If I were them, I definitely pick Ethereum mining network.

[khufuking]

Wow man this is just sad, I didn't even complete the video, the sound of his voice is full of depression, a lot of people facing the same thing but as individuals, seeing the price of RX 5xx getting as low as $100 used in my county after it was $350 used is just hurting, I have a lot of them and I don't know what I should do I already shut them down in October and they are setting there collecting dust I will not sell them that cheap, I still have some hope that things will turn around. This video is just a big mirror of what every miner face these days.

[percy_tc]

His whining is pathetic. He had this hangar because of mindless greedyness. Im pretty sure that he made out profits not just loss.

[100bitcoin]

Take a look : https://youtu.be/kxbCHlXZ-0U

Unfortunately, this world is about survival of the fittest. But, if he hold on, he'll definitely see profit.

[squatter]

Another thing he can do is to use his rigs to other type of cryptos.... or it's not good idea? what do you think about it? But as long as I've seen in the market and today's industry the whole cryptocurrencies are dropping.

When the whole market is nosediving, everything is unprofitable to mine or will be. I think most of his business was warehousing rigs for other people and renting hashpower. He can't afford to speculatively mine altcoins in this environment. He's liquidating everything to avoid walking away in debt.

Sucks for him, and goes to show you that the market doesn't really care about mining costs. Miners follow price, not the other way around.

[peacefulpeace]

this is disheartening, things seems to be falling apart for bitcoin but this is definitely not an end to bitcoin, as an investor, i see this as an opportunity to stock up my wallet with more bitcoin

[jojohamasa]

Take a look : https://youtu.be/kxbCHlXZ-0U

It is really sad
But let us be realistic , this is the market (gains and loses)
I expect more miners leave from the mining industry, only large entities capable of coping with this difficult period will be able to continue mining.

[novikov433]

the faster they close, the faster the growth will begin

[aliceHortrex]

Wow man this is just sad, I didn't even complete the video, the sound of his voice is full of depression, a lot of people facing the same thing but as individuals, seeing the price of RX 5xx getting as low as $100 used in my county after it was $350 used is just hurting, I have a lot of them and I don't know what I should do I already shut them down in October and they are setting there collecting dust I will not sell them that cheap, I still have some hope that things will turn around. This video is just a big mirror of what every miner face these days.

Now mining does not pay for itself. The price for the power required for mining is too ahead of the price that is obtained by mining now. However, people do not want to sell their video cards in the hope that the market will make a reversal and the price of bitcoin will grow again. I would advise you to continue mining if you can get income from other sources.

[franky1]

1. he was managing a cloud mining operations... (not good business model)
2. they are GPU's = altcoins....(not good business model)
3. nothing to do with bitcoin

4. he showed a few dozen racks and said he already shipped off just as many.. well that doesnt seem like much.
he tries to make it sound like he had ware house full of the stuff but listening to him fully. he was only operating out of a quarter of the space.

but anyway. its what happens when you cant afford to go big and have to rely on 'contracts' that are temporary.
cloud mining is never profitable for the user or the manager.. (unless the manager scams alot off the top, which is usually 99% of the case)
im guessing we will soon learn this guy who has GPU's that are still sellable as GPU's and still relevant for gamers. will cover his costs. but is making a video to play on heart strings for donations and to avoid paying out coins he did mine to users he contracted to.. by trying to plead poverty.
we usually see this happen.

but anyway nothing to do with bitcoin

5. selling "contracts" where he calculated rigs of just 5 GPU's were worth $10k... (facepalm) no wonder his contracts dried up faster than his water cooling

[figmentofmyass]

His whining is pathetic. He had this hangar because of mindless greedyness. Im pretty sure that he made out profits not just loss.

he probably pulled out decent profits over the years, but it sounds like this last venture was a big money pit.

it's true, he (like many others) overspeculated. just like investors who bought into the bubble, a lot of miners overestimated their margins. everyone got caught up in speculative madness that depended on unsustainable growth to maintain. now we're seeing a lot of that unwind as the market crashes.

[dothebeats]

IMO this is just normal considering that some miners might have bought their machines during the climb, which explains that the machines' price were somewhat outrageous. Some small miners are also shutting down for obvious reasons, and poor hindsight as well since some miners thought that it will be always a sunny day for crypto, and have invested loads of money into machines due to greediness. This, perhaps, is just a failure in one's business model without considering factors of losses and whatnot.

[Olaiasal11]

It is very sad. Minneser stopped mine because of the decreasing bitcoin prices in the market. They have to read regularly in Loses. They can not pay electricity bills. China's biggest minner is forced to shut down their firm because they can not profit from this.

[Infinixhot1996]

As long as the price continues to fall further down the lane, we'll still get more and more miners shutting down their rigs,as they can no longer make up the the amount spent or is to be spent on mining bitcoins.Its really sad for this network.

Just as sad as it is for investors who bought at extremely high prices and are at a significantly huge loss,with no profit in sight,and just simply hoping to break even.
High expectations most times in this network ends up being our bane

[kelz1]

Closing down the warehouse will remove rental expenses but there isn't a need to sell the mining gear. It will be useful when the prices rebound, unless he has not sold any bitcoin and kept any savings

[Kakmakr]

Running a Cloudmining business like that is a huge risk. You have a lot of factors that must be perfect for you to make a profit, because you are sharing the overall profit with the people that bought the contracts.  

A lot of these guys made a lot of money when the Bitcoin/Alt coin prices was high, but the profit margin decreased a lot, since the prices has dropped and some of them are simply not surviving with these narrow margins.  

Cloud mining operations is an exact science and a lot of people are failing.  

[hubballi]

If he started his Mining in recent times then he should have known the difficulty and expenses of mining and what outcome of profit it should get. Now crying is totally waste. Their are still lot of miners who started long back are still running as they have earned lot of in low value, It is totally pity that he got loss. Instead he could have purchased BTC and started trading which would have given more profit.

[glowing10]

Closing down the warehouse will remove rental expenses but there isn't a need to sell the mining gear. It will be useful when the prices rebound, unless he has not sold any bitcoin and kept any savings

In our country it has closed almost a year back itself as people started facing a cash crunch . Rentals where high , electricity costs is high which results in the ROI to be couple of years. Also with coins value dropping it is not a ideal to mine anymore and just run in losses .

[biskitop]

very sad, I see this happening in my country some miners try to sell their VGA at cheap prices.
this is an unpredictable risk and almost all miners suffer losses this year.

happens a lot, not in your country, in my country too. in fact, almost all miners around the world sell their vga because they want to stop trading bitcoin. there is no best solution to overcome this falling market. I hope the bitcoin ethics is quickly accepted and can make bitcoin even better.

[Red-Apple]

very sad, I see this happening in my country some miners try to sell their VGA at cheap prices.
this is an unpredictable risk and almost all miners suffer losses this year.

happens a lot, not in your country, in my country too. in fact, almost all miners around the world sell their vga because they want to stop trading bitcoin. there is no best solution to overcome this falling market. I hope the bitcoin ethics is quickly accepted and can make bitcoin even better.

why do people on this topic keep talking about VGA and bitcoin mining as if they are related!!! do you people honestly don't know that bitcoin is mined using ASICs not VGAs?
VGA mining ended years ago and now you can only mine altcoins with VGA not bitcoin and because of the hard crash of altcoins in addition to lack of faith in their future people give up on them easily. specially miners.

[munareal]

mining is not profitable now because of the present value of bitcoin. It is cheaper to invest in the coin that to mine it.

[nazaididuan1]

The price of the cryptocurrency is not enough to sustain the cost of daily mining! So these miners are leaving the mine!
However, some countries have cheap electricity bills, and some people continue to mine. As long as the cryptocurrency still exists, there are miners!

[fileo]

Does he not have enough money to keep it somewhat running? He mentioned he had this in 2013. I personally do not know much about mining as my team and I are marketers and developers, but if he was around in 2013, that means he must have reaped the benefits of the last bubble about a year ago. Is he just giving up or just out of money?

Probably, he lost all of the money from last 3years past. It is also possible that he just want to leave cryptocurrency as it is still declining. I assume one the market will get back on trac. He will definitely get back again.

[greeklogos]

The most disappointing news is that the most of new miners joined to crypto mining after phenomenal results of bitcoin and other crypto of the last year. I have a friend who borrowed money to buy a mining machine and after a year of mining and falling prices for crypto he is still in minus. But crypto fell down deeply for many times already, so probably this is just happening one more time.

[aad140386]

Unfortunately, the reality is that getting cryptocurrency becomes economically unprofitable. In Russia and Ukraine, the cost of production is now bordered by the cost of electricity costs. As far as I know, in other countries the situation is much worse. The problem also lies in the fact that the equipment that miners are now trying to sell to no one needs at any price. Cryptocurrencies at the bottom, and when no one knows the growth begins. Mining farms are sold almost free of charge. Now a mining farm for 7 video cards can be bought for $ 800. And this is not the cheapest price.

[Get-Paid.com]

Many miner have stop earn bitcoin by mining, they have stop because bitcoin and altcoin really at lower price and cost of mining tool more expensive than what have they earn from mining, maybe they will sell mining tool cheaper.

What was the cost of mining when Bitcoin was worth only $200 ?

[casperBGD]

yes, he lost some money, but he will be in for new round of investors when the market turns bullish, it is usual in all types of business

BTC is up 3x compared to 04/2017, and difficulty from that period did not rise more than that, so business model today is more viable than in that period, and people invested than, so just another story, without real meaning

[Wingo]

This is very sad to see. They did not anticipate that the market will go down and mining will slowly die. The PoW protocol is not economical, big blockchains like Ethereum is now migrating to PoS and it is killing the miners, this is their answer for scalability issues.

I feel sad for these people who failed in their dreams, so many dollars wasted and so many time ended up in trash just to acquire those materials and it is all gone because of the market crash. I feel sorry for them. But we all have to move on, this is part of the process of blockchain/cryptocurrency adoption.

[Shanu shan]

ohhh really sad to see this... why like this is there any option to get back or any other ways to get coins from crypto...

[Naughty Princess]

mining is not profitable now because of the present value of bitcoin. It is cheaper to invest in the coin that to mine it.

Miners have better stop and invest directly in bitcoin than mining that the cost is expensive. But selling their equipment is not a good idea to have something to invest because that will worth and need again when the price pump up. Cloud mining sites should not shutdown but wait also, it will not going to stay in this situation.

[AGD]

We need to praise Satoshi for the difficulty adjustment.

[Nellayar]

Take a look : https://youtu.be/kxbCHlXZ-0U

I do not want to watch the video because I am scare to see that bitcoin will destroy due to the miners who will quit to mine. However, it may be the cause for the bitcoin crash so I will watch it for a while. The recent crash is because of the miners, they tend to resist in bitcoin mining because its not anymore a profitable way for them. The consumption of electricity is too much high yet the fees for them is still low.

[mayax]

mining is not profitable now because of the present value of bitcoin. It is cheaper to invest in the coin that to mine it.

Miners have better stop and invest directly in bitcoin than mining that the cost is expensive. But selling their equipment is not a good idea to have something to invest because that will worth and need again when the price pump up. Cloud mining sites should not shutdown but wait also, it will not going to stay in this situation.

waiting for what? there are rents to be paid, salaries and so on

[franky1]

waiting for what? there are rents to be paid, salaries and so on

video said the rents are paid. the leaseholder kept the deposit.
as for salaries.. one man and his caravan(RV) .. well he is out of work. so no salary.
the guy in video is trying to throw a pity party. but calculating everything up. he aint at a loss.. he just didnt achieve his millionaire dream

[SistaFista]

Take a look : https://youtu.be/kxbCHlXZ-0U

Unfortunately that is what happening currently due the crashing value of crypto.
Miners income is coming from profit of selling the coin they mined with a good price
If they cannot sell with a good value and keep continue mining, they won't be able to get the profit, even they won't be able to pay the electricity bill.

[MartinAK]

Very sad to see that, the die hard spirit of btc is rolling down.

[mayax]

another one:  https://www.youtube.com/watch?v=lhg87v7kQvw     

[franky1]

another one:  https://www.youtube.com/watch?v=lhg87v7kQvw    

i am laughing
do you think bitmain is selling that guy rigs CHEAPER that bitmain themselves get them for......
LOL
hey dude bitmain have NO hardware cost.
every rig sold atleast 2 are built. one goes to customer, another bitcoin keep.
all bitmain need to do is cover electric.
which because they contract the electric they will get better deals than a guy renting some storage locker

what the guy in the video doesnt realise is that a S15 uses 1.6kwh for 28thash
the guy himself is using s9 which is 1.3kwh for 14thash
simple math
1.6/28=0.057
1.3/14=0.093

the guy is using 93watt per thash
bitmain is using 57watt per thash

bitmain uses less electric. =less cost
as i said earlier bitmain get free asics(they make them)
the guy however had to buy them AND had to wait weeks to even receive what he bought=less profit

what they guy does not realise is these 5 things.
1. bitmain are cash rich from selling old asics. selling new asics and contracts of handing mined coins OTC
2. bitmain dont want to ramp up hashrate as thats just shooting themselves in the foot.
3. to add onto point 2. bitmain dont want to ramp up to avoid drama of "bitmain has too much %
4. although bitmain could swap 80 old s9 for 40 s15 and stay at same hashrate. they know they can go down to 30 and still mine a healthy amount of blocks.
5. so the facility(one of many) that would normally handle 10 of 80 capacity is now being used as the QA test facility while the other facilities are running 30 s15 instead of 70 s9

right now their priority is not mining blocks. as i said they are cash rich. they just want to turn some S15 on for long enough to QA test them and then swap them out ready to shipnext week. so thats why the hashrate is not super high

[Msworld83]

Every miner makes their money during last year when the going was good and now is a kind of pay little hard time for them and those who sold at profit then shouldn't complain about the market as there were big opportunity for them in the making of the ath , and looking at this is why am so much concern about what bitcoin tx fee could become when miner reward get less and no more block to mine.

[Kolikalex55]

Of course it's a shame to watch such a spectacle but at the moment bitcoin transactions are working. Difficult times-Yes, but you need to look at the perspective that will be in the future. Don't give up !

[franky1]

Every miner makes their money during last year when the going was good and now is a kind of pay little hard time for them and those who sold at profit then shouldn't complain about the market as there were big opportunity for them in the making of the ath , and looking at this is why am so much concern about what bitcoin tx fee could become when miner reward get less and no more block to mine.

those that bought s9's this time last year.($2000 an asic) got enough coin to cover electric and hardware by easter and
from easter onwards they were then only having to cover electric. thus even now they are in profit

those that bought s9's around easter time($850 an asic) got enough coin to cover electric and hardware by august.
from august onwards they were then only having to cover electric. thus even now they are in profit

those that bought s9's around august time ($450 an asic) have not yet got enough to get returns on the hardware
and are crying right now

but. thats because the average ROI is 5 months(now extended to 7 months) so them august crybabies would not have broken even until february even without the downturn in hash/price

alot of people are also crying because they didnt get ROI to cover the new S15 which are $1450 an asic

...
but anyways wait for the end of december delivery and watch the hashrate and then the price rise

[prasad87]

Of course it's a shame to watch such a spectacle but at the moment bitcoin transactions are working. Difficult times-Yes, but you need to look at the perspective that will be in the future. Don't give up !

For users bitcoin just as good.
But miners lose ton of money.
Samsung probably not going to build asics now.
Network security will only suffer now.

[MappleJack]

at the uptrend. miner will get alot of money . but i think at this time. the cost they pay for this job really high, more than the money they get every month

[Malam90]

It is a shocking news that miners are closing Bitcoin mining for the increase of mining fees. Bitcoin mining fees are very high but bitcoin price is almost 2 times less. In such a situation, most of the mining companies are leaving from mining Bitcoin. If such situation exists, it will affect badly on Bitcoin price.

[Malam90]

at the uptrend. miner will get alot of money . but i think at this time. the cost they pay for this job really high, more than the money they get every month

It is the future potential but the present situation is very worse than past few months. How they will continue mining, if they face huge losses instead of profits. No employee will come in the office if he doesn't get his monthly salary.

[MMS2017]

Bitcoin is down right now so the miners are closing all operations and now a days due to high electricity costs it is very painful for all the crypto users and large number of miners were in China so now they will move to other locations for a good income from mining but now the cost is more than benefits.

[thankyoulord]

yes miners are closing. i saw a similar thing online and it is really sad. the cost of mining currently is high and as such they are forced to close in other not to run at loss. but then when things bounce back to normal we will see them return to mine.

[chenille]

It is a shocking news that miners are closing Bitcoin mining for the increase of mining fees. Bitcoin mining fees are very high but bitcoin price is almost 2 times less. In such a situation, most of the mining companies are leaving from mining Bitcoin. If such situation exists, it will affect badly on Bitcoin price.

Switching off miners is indeed not good for the people who are doing this because it means they are generating no more profits for the hardware they paid for. In the meantime, better technology gets launched and if BTC price will rise, it's possible that the miners are outdated.
But in addition, it's also a sign for bad business planning. Everyone knows the risk in mining and if you don't have super cheap electricity, BTC mining can become unprofitable soon.

Regarding the BTC price it's always other way round. Mining (Hashrate) is not determining BTC price, but BTC price is determining mining (Hashrate).

[1Referee]

at the uptrend. miner will get alot of money . but i think at this time. the cost they pay for this job really high, more than the money they get every month

Miners haven been grossly rewarded on the way up last year, because there by far wasn't enough available mining gear to add to the network. I think that with better planning and forward thinking most miners could have gotten a better position in the space by now, but their greed got the better of them. Rookie investors thinking that Bitcoin would continue to boom have been taught a hard lesson.

Right now if the price spikes up, there is like 20-30EH waiting to enter, which will make sure that every miner considering to buy more gear to think it through twice before actually doing it.

[tmpwhore]

Very sad but when the market will start recovering, new asic miners will cost a lot of money. I think that huge mining pools will continue their working, their dominance will increase.

[franky1]

thouands of orders of next gen asics are alrady inplace bitmain have said.
delivery is not until the final week of december.
so ofcourse we are in the 'lag' stage between users turning off old miners and receiving their new rigs.

just wait until the deliveries begin late december and you will see the change occur